India's SBI Funds Management saw its $1.03 billion initial public offering (IPO) fully subscribed on the second day of bidding on Wednesday, as investors endorsed the asset manager's extensive distribution network and the potential of the country's expanding mutual fund market.SBI Funds Management, a joint venture between the country's largest lender State Bank of India (SBI) and Europe's biggest asset manager Amundi, managed funds worth 12.5 trillion rupees ($131 billion) as of March 2026.The IPO, which values India's largest asset manager at 1.17 trillion rupees, or 38 times its 2026 earnings per share, has drawn bids for around 212 million shares against 124.56 million on offer, as of 1:33 p.m. IST, exchange data showed. Retail investors bid for 68 million shares, 1.26 times the shares set aside for them.Before the IPO's public launch, the company secured $278.5 million from institutional investors, including BlackRock and sovereign wealth funds from Singapore, Abu Dhabi, and Norway.The IPO will close for subscription on Thursday, and the shares are expected to begin trading on July 21.Analysts said the company's strong presence beyond major cities positions it to benefit from rising retail participation in mutual funds with 64 consecutive months of inflows through June 2026.Smaller cities are contributing more heavily to growth in assets under management for fund managers, and that puts SBI Funds Management in a strong position, said Ambareesh Baliga, a Mumbai-based market analyst.SBI Funds Management can also draw on the State Bank of India's wide distribution network. The IPO, India's largest so far in 2026, follows a subdued first half for primary market fundraising as a spike in crude oil prices driven by the Iran war raised growth concerns in Asia's third-largest economy.India is expected to see a busy pipeline of public offerings in the second half of the year, with mega listings from Reliance Jio and National Stock Exchange expected before the end of 2026.
